Performance appraisals are one way to maintain a standard of performance in an organization. For smaller businesses this is especially important because it can be one of the key advantages that a smaller work force can give a new business over larger rivals. The weightage method has seen widespread use in business performance appraisals. It allows organizations to account for different factors and rank different abilities and levels of performance depending on their needs.

Weightage

Most performance appraisals have been formalized with certain specific categories under which employees are given ratings. Weightage methods apply differing importance to separate categories. For instance, a performance appraisal designed in one organization might give higher importance to service than another factor like punctuality. By giving certain categories of evaluation increased weight they count for more points in the overall score. This gives employees more incentive to excel in areas important to a business.

Specialization

Specialization is one of the more common strategies for new and small businesses. By specializing in a certain niche of the market, and particularly excelling at a certain product or service, they can outmaneuver larger competitors. By using weightage measures in performance appraisals small businesses can help their employees to tailor their skills in a way that will better match their priorities. Employees better suited to the needs of the business will be those who are promoted.

Subjectivity

Often in larger organizations what comes to matter more are objective measures of performance such as sales numbers and other statistics. While these measures matter they can obscure more subjective factors that matter in the long term. By focusing on these more subjective measures, such as service, in weighted performance appraisals a small business can increase any potential advantages that it might have in the market. Judging these factors correctly requires closer scrutiny by management.

Job Satisfaction

Workers are more likely to feel satisfied with a job when they feel they are being evaluated fairly based upon categories that suit their personal priorities. Retention is critical for small businesses because it allows them to build up their human resources and spend less time and money on training. By applying the appropriate weightage in performance appraisals, businesses can reinforce a positive working environment that will then improve employee performance and retention.

About the Author

Casey Reader started writing freelance in 2010. His work appears on eHow, focusing on topics in history and culture. Aside from freelance work, Reader is actively pursuing a career in creative writing. He graduated from Centenary College of Louisiana with a Bachelor of the Arts in history and English literature.